International Logistics
Primary packaging is the package that retailers will see
false
RORO is the type of ship that specializes in shipping perishable commodities.
false
The four drivers for international trade are cost driver, market driver, policy driver, and technology driver.
false
The legal system that governs the contract of sale for U.S. domestic transactions is CISG
false
The main purpose of having the double haul design in their water vessels is to increase vessel fuel efficiency
false
The sole purpose of packaging is to protect the cargo.
false
Tradecard is safe for the exporter while providing high customer service, however, the main drawback is that it is very expensive
false
Under the CIF term, the exporter does not need to pre-pay for the insurance
false
In a documentary collection, which of the following is responsible to notify the importer and release the documents
presenting bank
Ultimately, the importer is the one that needs to pay for all the shipping costs even if these costs are "pre-paid" by the exporter.
true
Unitization refers to the procedure when smaller packaging units are assembled into a single larger unit.
true
Please chose the correct statement about Incoterms
Under CIF term, the exporter needs to pre-pay insurance and the main carriage
Which of the following statement about the open account is incorrect:
Under the factoring without recourse, if the factoring company fails to collect payment from the importer, the factoring company can ask the exporter for assistance
Which party will act on the exporter's behalf and review the letter of credit?
advising bank
Active exporting is applicable when companies want to exploit the possibilities that sales abroad can bring. Which of the following strategy belongs to active exporting?
agent
Regardless of the Incoterm, the exporter is always required to
assist in export customs clearance
To ensure an international transaction to be successful, the importer and the exporter need to agree on three critical elements. Which of the following is not one of the elements:
method of packaging
As an exporter, which one will I consider to be the method of payments with the highest customer service
open account
As a seller/exporter, which one will I consider being the method of payments with the lowest non-payment risk
cash in advance
As an exporter, which one will I consider to be the method of payments with the lowest non-payment risk
cash in advance
Which party is called Beneficiary in a letter of credit transaction?
exporter
An agent is an equivalent to a distributor.
false
Factor endowment theory is a theory that holds that, over its life cycle, a product will be produced in different countries
false
Importers must pay the exporter immediately when they are presented with a date draft.
false
Once the cargo is loaded into the container, it is unnecessary to use block materials for extra protection.
false
One important criterion to decide whether a country has an absolute advantage is the opportunity cost.
false
Among the statements of sourcing, which of the following is correct:
Near shoring refers to the practices that companies bring production back to nearby countries
Which of the following about cost driver for the international transaction is incorrect
Among the four drivers (cost, market, technology, competition), it is the least important one
Which of the following statement about the method of entry is incorrect?
Both ETC and EMC take titles of the products before reselling them
Which Incoterms can be used for all modes of transportation?
CIP
Indirect exporting is applicable when the companies are unwilling exporters and want to focus on the domestic market, which of the following belongs to indirect exporting:
ETC
Forecast approach A: ME= 4, MAD = 18;Forecast approach B: ME=-5, MAD = 6;Which of the following statement is incorrect?
Forecast approach A provides a better forecast since its MAD is larger
Which of the following about distribution contract termination is correct:
If an exporter decides to terminate the contract with a distributor because of the change of company strategy, such termination will be a termination for convenience
Which organization created and periodically reviews INCOTERMS?
International Chamber of Commerce (ICC)
Which is not true of the Harmonized System of Classification?
It has limited acceptance in the world
Which of the following is correct:
Main-carriage refers to the international transportation between importing and exporting country
Which of the following statement about resolving a dispute in an international distribution relationship is true
Mediation is not conducted in a court room setting
What is gray marketing?
Sale of authentic products by the distributor through unauthorized distribution channels
According to the factor endowment theory, which of the following is not a factor
Technology
Which of the following statement about the documents involved in an international transaction is correct
The exporter usually drafts and sends the pro forma invoice to the importer
A product is imported to U.S. from a foreign country. Depends on the country of origin of the product, which of the following statement is true
The importer has to pay more duty if the product is from Cuba and North Korea
Each Incoterm specifies the following, except:
Which party owns the goods at each point of the shipment.
Each Incoterm specifies the following, except:
Which payment method will be used for this transaction
Teenagers all over the world listen to Lady Gaga and buy Nike sneakers. These are examples of:
globalization of markets
According to the factor endowment theory, which of the following is not a factor?
innovation
Which party issues the letter of credit?
issuing bank
Which of the following are classification of packaging:
primary and secondary packaging
Which of the following is not a driver for firms to conduct international business?
regulation driver
There are two types of rules to determine the product's country of origin: Substantial transformation and Change in the HS classification.
true
According to the factor endowment theory, which of the following is not a factor?
technology
What is an Harmonized System of Classification code root?
the first six digits of the code, which refers to a broader product category shared by all countries
Who ultimately pays for transportation and other shipping costs, even if these costs are "pre-paid" by the exporter?
the importer
What is the delivery point under Incoterms?
the point of transfer of responsibility for the goods from the exporter to the importer
Tariffs, or duties, are assessed based on the following factors, except
the standing of the importer on the white list of law-abiding importers.
Benefits for flying a flag of convenience include few regulatory requirements and a lower tax rate for the shipowners.
true
Importers must pay the exporter immediately when they are presented with a sight draft.
true
In the case of factoring without recourse, the factoring bank is responsible for the payment even if the collection is not successful.
true
Joint venture (JV) is an approach for firms to produce overseas.
true
Logistics is a segment of supply chain management.
true
One potential threat of licensing is that intellectual property might not be well-protected.
true
Secondary packaging is the package that retailers will see
true
The exporter is called Beneficiary in a letter of the credit transaction basis transaction.
true
The importer is known as the Applicant in a letter of credit transaction
true
The plimsoll mark is a mark on the side of the ship that indicates the classification society.
true